Description of this paper

prepare a bank reconciliation




Question;$ millions for Research In Motion and Apple. 4-9, Nokia, Research in Motion, and Apple are competitors in the global marketplace. Key comparative figures for each company follow.Nokia*.................... 40,984 27,720Research In Motion?......... $14,953 $ 8,369Apple?.................... $42,905 $25,683Required1. Rank the three companies (highest to lowest) based on the gross margin ratio.2. Which of the companies uses a multiple-step income statement format? (These companies? income statements are in Appendix A.)Cash 2,200 Merchandise inventory 11,500 Store supplies 4,800 Prepaid insurance 2,300 Store equipment 41,900 Accumulated depreciation?Store equipment 15,000Accounts payable 9,000Common stock 5,000Retained earnings 27,000Dividends 2,000 104,000Sales Sales discounts Sales returns and allowances 1000 Cost of goods sold 37,400 Depreciation expense?Store equipment 0 Salaries expense 31,000 Insurance expense 0 Rent expense 14,000 Store supplies expense 0 Advertising expense 9,900 Totals 160,000 160,000Rent expense and salaries expense are equally divided between selling activities and the general and ad-ministrative activities. Rex Company uses a perpetual inventory system.Required1. Prepare adjusting journal entries to reflect each of the following:a. Store supplies still available at fiscal year-end amount to $1,650.b. Expired insurance, an administrative expense, for the fiscal year is $1,500.c. Depreciation expense on store equipment, a selling expense, is $1,400 for the fiscal year.d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,100 of inventory is still available at fiscal year-end.2. Prepare a multiple-step income statement for fiscal year 2011.3. Prepare a single-step income statement for fiscal year 2011.4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2011.The following information is available to reconcile Clark Company?s book balance of cash with its bankstatement cash balance as of July 31, 2011.A. On July 31, the company?s Cash account has a $26,193 debit balance, but its July bank statementB. shows a $28,020 cash balance.C. Check No. 3031 for $1,380 and Check No. 3040 for $552 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $336 and Check No. 3069 for $2,148, both written in July, are not among the canceled checks on the July 31 statement.D. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,250 but was erroneously entered in the accounting records as $1,230.E. A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000 cash on a non-interest-bearing note for Clark, deducted a $45 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement.F. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.G. Enclosed with the July statement is a $15 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.H. Clark?s July 31 daily cash receipts of $10,152 were placed in the bank?s night depository on that date, but do not appear on the July 31 bank statement.I. Requireda. Prepare the bank reconciliation for this company as of July 31, 2011.


Paper#40619 | Written in 18-Jul-2015

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